Eternal inflation is a hypothetical inflationary universe model, which is itself an outgrowth or extension of the Big Bang theory.
According to eternal inflation, the inflationary phase of the universe's expansion lasts forever throughout most of the universe. Because the regions expand exponentially rapidly, most of the volume of the universe at any given time is inflating. Eternal inflation, therefore, produces a hypothetically infinite multiverse, in which only an insignificant fractal volume ends inflation.
Paul Steinhardt, one of the original architects of the inflationary model, introduced the first example of eternal inflation in 1983, and Alexander Vilenkin showed that it is generic.
Alan Guth's 2007 paper, "Eternal inflation and its implications", states that under reasonable assumptions "Although inflation is generically eternal into the future, it is not eternal into the past." Guth detailed what was known about the subject at the time, and demonstrated that eternal inflation was still considered the likely outcome of inflation, more than 20 years after eternal inflation was first introduced by Steinhardt.
Inflation, or the inflationary universe theory, was originally developed as a way to overcome the few remaining problems with what was otherwise considered a successful theory of cosmology, the Big Bang model.
In 1979, Alan Guth introduced the inflationary model of the universe to explain why the universe is flat and homogeneous (which refers to the smooth distribution of matter and radiation on a large scale). The basic idea was that the universe underwent a period of rapidly accelerating expansion a few instants after the Big Bang. He offered a mechanism for causing the inflation to begin: false vacuum energy. Guth coined the term "inflation," and was the first to discuss the theory with other scientists worldwide.
Guth's original formulation was problematic, as there was no consistent way to bring an end to the inflationary epoch and end up with the hot, isotropic, homogeneous universe observed today. Although the false vacuum could decay into empty "bubbles" of "true vacuum" that expanded at the speed of light, the empty bubbles could not coalesce to reheat the universe, because they could not keep up with the remaining inflating universe.
In 1982, this "graceful exit problem" was solved independently by Andrei Linde and by Andreas Albrecht and Paul J. Steinhardt who showed how to end inflation without making empty bubbles and, instead, end up with a hot expanding universe. The basic idea was to have a continuous "slow-roll" or slow evolution from false vacuum to true without making any bubbles. The improved model was called "new inflation."